Company Fixed Deposit
Company Fixed Deposit
Company Fixed Deposits (Company FDs) are term deposits that are offered by non-banking financial companies (NBFCs) and other corporations, rather than commercial banks. They function much like standard bank fixed deposits (FDs): an investor commits a lump sum of money for a specific, fixed period and earns a predetermined interest rate on that amount.
Benefits
- Higher Returns: Company FDs typically provide 2-4% higher interest rates than traditional bank FDs, making them a more profitable investment option.
- Steady Income: Investors can select a plan to receive regular interest payouts on a monthly, quarterly, half-yearly, or annual basis, ensuring a consistent stream of income.
- Flexible Withdrawal: Most Company FDs impose a minimum lock-in period of only 6 months. After this time, investors are generally allowed to withdraw the principal anytime they need.
- Tax Advantage: No TDS (Tax Deducted at Source) is levied if the total interest earned from a single company does not exceed ₹5,000 per financial year.
Product List
| COMPANY | RATING | 1 YEAR | 2 YEAR | 3 YEAR | 4 YEAR | 5 YEAR | ADDITIONAL SR.CT | MIN. AMOUNT |
|---|---|---|---|---|---|---|---|---|
| Bajaj Finance Ltd. (NON INDIVIDUAL FIXED DEPOSIT) | FAAA by CRISL, MAAA by ICRA | 7.4% | 7.55% | 7.85% | 7.85% | 7.85% | - | ₹15,000 |
| Bajaj Finance Ltd. Corporate Deposits | FAAA by CRISL, MAAA by ICRA | 7.6% | 7.8% | 7.5% | 7.5% | 7.5% | Upto 5cr. | ₹15,000 |
| Bajaj Finance Ltd. (INDIVIDUAL/HUF) | FAAA by CRISL, MAAA by ICRA | 7.4% | 7.55% | 7.85% | 7.85% | 7.85% | 0.25 (Upto 5cr.) | ₹15,000 |
| ICICI Home Finance Co. Ltd (INDIVIDUAL DEPOSIT) | AAA by CRISL, ICRA & CARE | 7% | 7.35% | 7.45% | 7.45% | 7.45% | 0.25 (Upto 2cr.) | ₹10,000 |
| ICICI Home Finance Co. Ltd (TRUSTS/HUF/FIRM/SOCIETIES & CLUBS) | AAA by CRISL, ICRA & CARE | 7.25% | 7.65% | 7.75% | 7.75% | 7.55% | - | ₹10,000 |
| LIC Housing Finance Sanchay Corporate Deposit Scheme | CRISL – AAA/STABLE | 7.45% | 7.45% | 7.45% | - | 7.45% | - | ₹20,000 |
| LIC Housing Finance Sanchay Public Deposit Scheme | CRISL – AAA/STABLE | 7.25% | 7.6% | 7.75% | - | 7.75% | 0.25 (Upto 2cr.) | ₹20,000 |
| Mahindra and Mahindra Financial Services Ltd. (CUMULATIVE SAMRUDDHI) | CRISL – FAAA | 7.5% | 7.8% | 8.1% | 8.05% | 8.1% | 0.25 | ₹5,000 |
| PNB Housing Finance | FAA+ by CRISL | 7.4% | 7.95% | 7.65% | 7.4% | 7.5% | 0.25 (Upto 1cr.) | ₹10,000 |
| Shriram Fin Ltd. JUBILEE DEPOSIT 50 MONTH SCHEME | ICRA AA+ STABLE | - | - | - | 8.09% | - | 0.50, (Women Deposit 0.10), (Renewal 0.25) | ₹5,000 |
| Shriram Finance Ltd. (RESIDENT/INDIVIDUAL/NRI) | ICRA AA+ STABLE | 7.59% | 7.59% | 8.38% | - | 8.47% | 0.50, (Women Deposit 0.10), (Renewal 0.25) | ₹5,000 |
| Shriram Finance Ltd. (TRUST/PARTNERSHIP/INSTITUTION/CORPO./PARTNERSHIP FIRM/SOLEPROPRITORSHIP/HUF) | ICRA AA+ STABLE | 7.59% | 7.87% | 8.38% | - | 8.47% | 0.25 Renewal Benefit | ₹5,000 |
Latest FD Rates
| Tenure | PNB Housing Finance | Bajaj Finance | Shriram Finance |
|---|---|---|---|
| 12 Months | 6.60% | 6.60% | 7.00% |
| 24 Months | 6.75% | 6.95% | 7.25% |
| 36 Months | 6.90% | 6.95% | 8.20% |
| 48 Months | 6.90% | 6.95% | 8.57% |
| 60 Months | 6.90% | 6.95% | 8.85% |
| Senior Citizen FD Rates | |||
| 12 Months | 6.85% | 6.95% | 7.50% |
| 24 Months | 7.00% | 7.30% | 7.75% |
| 36 Months | 7.15% | 7.30% | 8.50% |
| 60 Months | 7.15% | 7.30% | 9.00% |
Key Observations
Highest overall returns: Shriram Finance Limited
Best safety rating (AAA): Bajaj Finance Limited
Moderate option: PNB Housing Finance Limited
✔ Balanced choice: Bajaj Finance
✔ Highest return: Shriram Finance
✔ PNB Housing: Slightly lower rates but PNB-backed.
Features
You can select a tenure that suits you best from a wide range of options. Interest payouts can be chosen as per your preference:
Company Fixed Deposits are non-transferable, ensuring safety since FD receipts cannot be misused if lost or stolen. Premature withdrawal is allowed anytime, subject to the prescribed penalty.
Diversify Risk – Spread deposits across multiple companies in different industries. This way, risks are balanced among sectors and firms.
Wide Choices – With many companies in the deposit market, you can decide whether to renew or reshuffle your investments. Attractive rates are offered from time to time.